Public sector bank State Bank of India (SBI) on Monday said that it has slashed the interest rates for home loan below Rs 30 lakh by 25 basis points to 8.35 per cent and loan above Rs 30 lakh by 0.10 per cent. The bank further added that the home loan customer can also avail an interest subsidy of Rs 2.67 lakh under Pradhan Mantri Awas Yojana Scheme. The move would give a boost to government’s ‘Housing for All’ scheme and may encourage people to invest in affordable housing.
The latest reduction in interest rates from SBI makes it the lowest in the market. The new interest rates will be effective from May 9th, 2017.
To supplement the affordable housing push, SBI has also come out with special offerings for Construction Finance to the builders for affordable housing projects. This will give a dual push both for construction finance and also for home finance for affordable homes.)
Below are the features of the home loan offer
1. For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent
2. The new rate reduction of 25 per cent for women will be for the salaried borrowers and for the non-salaried, it will be 20 bps cut
3. For male salaried and non-salried, similar rates will be applicable
Earlier this month, SBI cut its term deposit rates by up to 50 basis points for various maturities. The rates have been revised for medium and long term deposits and for an amount below Rs one crore. According to the new structure, for two to less than three years deposits, SBI will offer a rate of 6.25 per cent as compared to 6.75 per cent earlier, the bank said. For the similar maturity, the deposit rates for senior citizen have been cut to 6.75 per cent from 7.25 per cent.